Stock Analysis

Who Has Been Selling Y-mAbs Therapeutics, Inc. (NASDAQ:YMAB) Shares?

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NasdaqGS:YMAB
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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Y-mAbs Therapeutics, Inc. (NASDAQ:YMAB).

Do Insider Transactions Matter?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Y-mAbs Therapeutics

The Last 12 Months Of Insider Transactions At Y-mAbs Therapeutics

The insider, Claus Juan Moller San Pedro, made the biggest insider sale in the last 12 months. That single transaction was for US$7.3m worth of shares at a price of US$37.75 each. That means that even when the share price was below the current price of US$45.56, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 23% of Claus Juan Moller San Pedro's stake. Notably Claus Juan Moller San Pedro was also the biggest buyer, having purchased US$33k worth of shares.

All up, insiders sold more shares in Y-mAbs Therapeutics than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:YMAB Insider Trading Volume November 18th 2020

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Y-mAbs Therapeutics insiders own about US$333m worth of shares (which is 18% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Y-mAbs Therapeutics Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of Y-mAbs Therapeutics, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 2 warning signs for Y-mAbs Therapeutics (1 is a bit unpleasant!) and we strongly recommend you look at these before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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What are the risks and opportunities for Y-mAbs Therapeutics?

Y-mAbs Therapeutics, Inc., a commercial-stage biopharmaceutical company, focuses on the development and commercialization of novel antibody based therapeutic products for the treatment of cancer in the United States.

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Rewards

  • Revenue is forecast to grow 22.04% per year

Risks

  • Highly volatile share price over the past 3 months

  • Currently unprofitable and not forecast to become profitable over the next 3 years

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Y-mAbs Therapeutics

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